How Professional Service Firms Derive Triple Value Bottomline: An IC Perspective

Abstract

The ever-increasing market turbulence has turned today’s corporate landscape more competitive and complex. Particularly during the last two decades, the increased utilization of Information & Communication Technologies (ICTs) globally transformed the services sector in terms of ease of business processes and improved client service delivery. However, in the current knowledge-based era, these tools & technologies would only be meaningful if these are appropriately utilized by a knowledgeable workforce. In other words, this knowledge age has changed the success mantra of business competitiveness by re-shifting the focus from ICT-based transformations to knowledge-based transformations, though the availability of ICT systems has further augmented the organizational capabilities. Moreover, truly capitalizing on these warrants a knowledge-enabled work culture and recognizing as such the strategic significance of in-house Intellectual Capital (IC) that serves as a prime mover of achieving a sustainable competitive advantage. However, the maximum potential of IC for deriving multi-stakeholder value has not been fully achieved. Therefore, by administering 12 face-to-face semi-structured interviews at Australian Professional Service Firms (PSFs), this research offers a novel perspective on IC valuation by presenting the concept of ‘Triple Value Bottomline’ coupled with ‘IC Best Practices for PSFs’. These collectively offer IC evaluation, measurement and management mechanisms. Overall, the findings reveal immense potential of IC for achieving diverse value outcomes for multi-stakeholders in PSFs.

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